Rs. 2000 note not to remain in circulation from 30th September 2023

Rs. 2000 note not to remain in circulation from 30th September 2023.

RBI today announced that Rs. 2000 note not to remain in circulation from 30th September 2023 but it will continue to remain a legal tender. This would mean that the government intends to reduce the use of Rs. 2000 notes in the economy. The press release by RBI said that Rs. 2000 notes was introduced to cope with the large amount of Rs. 500 note and Rs. 1000 notes which were discontinued in 2016. And from 2018-19, Rs. 2000 fresh notes have not been printed. The public at large can get the Rs. 2000 note exchanged up to 30th September 2023.

The decision to remove the highest currency note of the country will have large impact. Last time when demonetization happened, there was no GST. This time when most of the working population is registered under GST, it will be highly challenging for wrongdoers to deposit cash in their bank accounts. Also under income Tax Act, things would be equally challenging. But since the government wishes to reduce the circulation, the day is not far that Rs. 2000 note shall not be a legal tender. Just about a year to go for lok sabha elections, such a huge step would go which side, would be interesting to watch.